A Boeing 787 Dreamliner operated by United Airlines takes off from Los Angeles International Airport.
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United Airlines reported a fourth-quarter loss on Wednesday and warned that sales would continue to suffer in early 2021 as the coronavirus pandemic dragged on.
See United’s performance in the quarter, compared to what Wall Street expected, based on the average estimates compiled by Refinitiv:
- Adjusted earnings per share: a loss of $ 7 against an expected loss of $ 6.60 per share.
- Revenue: $ 3.41 billion versus expected $ 3.44 billion in revenue.
United’s fourth-quarter revenue fell 69% over the previous year, to $ 3.41 billion, below analysts’ estimates of $ 3.44 billion. Its net loss of $ 1.9 billion in the quarter compares to a profit of $ 641 million the previous year.
The Chicago-based airline reported an adjusted loss of $ 7 per share, compared to estimates of a loss of $ 6.60 per share. It burned about $ 33 million a day on average in the quarter, including debts and damages.
The carrier does not expect a rapid recovery earlier this year. First quarter revenue is likely to be between 65% and 70% below 2019 levels, the airline said. She estimated that first quarter capacity will drop at least 51% below the same months in 2019, echoing a similar perspective from American Airlines.
United’s shares fell 1.5% after hours after the report.
Airline executives said the widespread availability of coronavirus vaccines will spur recovery in air travel. But the launch of the vaccine was slow and chaotic, marked by scarcity of doses.
United executives will hold a conference call to discuss their revenue and outlook at 10:30 am ET on Thursday.